Kakao takes a 9.05% stake in SM Entertainment, becoming the second largest shareholder in Kpop News
cocoa now it has become little entertainmentis the company’s second largest shareholder, acquiring a 9.05% stake in the company. They plan to strengthen their competitiveness in the music and content industry with SM Entertainment to bring the vision “Beyond Korea” to life.
In addition, the two companies signed a three-party business agreement to strengthen K-Culture’s global status in the rapidly changing music and content environment. Kakao and SM will jointly promote global management business by using networks as overseas partners of each company.
The two companies will also work together to strengthen IP competitiveness, such as by co-scheduling K-pop artists through global auditions. They will also collaborate on the production and worldwide distribution of albums and music.
The three companies will leverage cocoa’s artificial intelligence and other technological capabilities to prepare for future deals. Kakao will also contribute to the development of Seoul Arena, a complex cultural facility in Seoul.
Bae Jae Hyun, CEO of Kakao Community Investment said: “Through this investment and collaboration, we hope the two companies will help each other withstand the fierce competition in the global music and content market and appeal to K-Content’s mainstream global audience.”
